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I am generating XML and using XSL I am able to display it on the IE5 browser. But not all browsers support XML & XSL. So I would like to convert that XML and XSL to HTML in order to display it on all browsers. Is this possible? How?

Converting XML and XSL to HTML is exactly what IE5 does internally. This process is called a transformation. XML is transformed, using an XSL stylesheet, to HTML.
There are many ways to do XSLT (XSL Transformation) and a lot of people/companies have written Java classes to do this. Some are free other aren't.

I recommend you check out xml.apache.org for Xalan. This is a free and open-source XSLT (and XPath!) engine and should be all you need.